Purchasing & Procurement Policy

Purchasers are strictly prohibited from accepting a bribe or succumbing to other attempts to exert undue influence with respect to the purchaser’s job responsibilities.

All purchasers shall comply with the provisions of Iowa Code chapters 8A, 26, 68B, and all other applicable procurement laws, rules, and policies in performing their procurement responsibilities, including those outlined in this policy. In the event of a conflict between this policy and applicable law, the applicable law shall take precedence.

An individual may have a conflict of interest even though a private advantage was not sought or actually gained.

Iowa Code section 68B.2Aƒ (1) prohibits state employees from engaging in outside employment or activities which may conflict with the employee’s official duties and responsibilities. The statute contains a list of things that are deemed to be unacceptable conflicts of interest. However, employees should keep in mind that the list is not exhaustive; unacceptable conflicts of interest exist in other situations. Iowa Code section 68B.3 prohibits a state employee from selling goods or services to a state agency if the sale is in excess of $2,000 in any one occurrence, unless the sale is made after public notice and a competitive bidding process. Even if the sale is permissible, the state employee must disclose the sale by filing a report with the Iowa Ethics and Campaign Disclosure Board within twenty days of the sale. These provisions apply to all transactions, including those which involve a targeted small business in which an employee has a direct or indirect financial interest or other interest, as such terms are defined in this policy.

Purchasers shall not knowingly solicit or acquire goods or services from a related party. A supplier or service provider in a proposed procurement with the state is a related party of a purchaser conducting the procurement if the purchaser:

• Has any direct or indirect financial interest or other interest, as such terms are defined below, in the supplier or service provider; or
• Controls or actively influences the activities of, the supplier or service provider, or who has a related party who owns or controls or actively influences the activities of the supplier or service provider; or
• Has an immediate family member who is employed by the supplier or service provider in a management or sales capacity.

Other interests of a purchaser include serving as a compensated or non-compensated director, officer, consultant, broker, agent, employee, or representative of any business entity proposing to conduct business with the state, direct or indirect financial interest.

If a procurement project would involve a purchaser who has, or potentially may have, a related party conflict, the staff member shall advise the director in writing who, in turn, will assign the procurement project to a staff member not having a related party conflict.

If a procurement project would involve a purchaser from another state agency who has, or potentially may have, a related party conflict, the purchaser shall advise its agency management in writing. The agency management shall then assign the procurement project to a staff member who does not have a related party conflict. If the agency fails to do so, the purchaser shall provide a copy of the written notice to the director who, in turn, will discuss with agency management.

If a related party issue involving a purchaser is discovered either during the procurement process or after the Department has entered into a contract with the related party, the matter shall be referred to the purchaser’s management as described above. Management will review the matter and determine the appropriate response and actions with respect to the purchaser, the procurement process, and the contract with the related party.

If a purchaser conducts a known related party transaction, or fails to disclose a related party conflict, the purchaser may be subject to discipline up to and including termination.

Purchasers shall disclose all real, apparent, or potential conflicts of interest for review as described below. Disclosures by Department purchasers shall be made to the director. Disclosures are required in three instances:

• Annual disclosures: At the beginning of each fiscal year, purchasers shall report direct, indirect or other financial interests that pose or may pose a real, apparent, or potential conflict of interest. These disclosures shall be updated both annually and as new reportable interests are obtained or as new reportable activities occur.
• Disclosure of related parties: At the beginning of each fiscal year, purchasers shall provide written notice of any known related party in which they hold a direct, indirect financial or other interest.
• Situational disclosures: situations such as a bid (formal or informal) or request for proposal may result in the discovery of a direct, indirect or other financial interest previously unknown or inadvertently overlooked and not disclosed that may pose a conflict of interest under this policy. Such situational disclosures shall be made as soon as practicable after the purchaser learns of the real, apparent, or potential conflict of interest.

When a disclosure is made under this policy, the actual, apparent, or potential conflict of interest will be reviewed by the purchaser’s management. If a conflict of interest is found to exist, appropriate steps shall be taken by the parties to manage, reduce, or eliminate the conflict of interest.

As a routine part of conducting the annual audit IDB staff may be asked whether they know about fraudulent activity. IDB staff are welcome to report any suspicions of fraud to the CFO or to the director. You may also contact the state auditor’s office at (515)281–5834 whether or not department management is informed at all. Other means of reporting fraud also exist. Certain whistleblower protections in the Code are in sections 8A.417, 70A.28–29, and chapter 685.

No purchase of goods or services shall be made on behalf of IDB from any agency, community rehabilitation program, or other business holding a current certificate under 14C of the Fair Labor Standards Act which allows that employer to pay workers with disabilities less than the minimum wage.